According to experts from the Vietnam Productivity Institute (National Quality Measurement Standards Committee), when businesses apply Lean, they can achieve the following goals:
Reduce scrap and waste: Reduce scrap and physical waste, including excess use of raw materials, prevention of scrap generation, cost reduction due to product reprocessing and product features not required by customers;
Reduce cycle time: reduce process and production cycle times by minimizing waiting times between stages, as well as process preparation times and product design or specification changeover times;
Reduce inventory levels: minimize inventory levels at all stages of production, especially work in progress between stages. Lower inventory levels mean lower working capital requirements;
Utilize equipment and production space: use equipment and space more efficiently, increase production efficiency of existing equipment, minimize machine downtime;
Increased flexibility, enhanced ability to produce a wide variety of similar products with quick changeover and reduced start-up time for new products;
Increase production, Organizations can significantly increase production on existing facilities by reducing production cycles, minimizing “bottlenecks” and machine stops, ensuring workers work efficiently, and not performing unnecessary operations.
Organizational Benefits: Businesses will gain many benefits when applying Lean such as increasing labor productivity, improving product or service quality, reducing administrative procedures, reducing pressure on employees and engaging employees more with their work.
In addition, each employee directly or indirectly involved in the product creation process has a clear awareness and thinking about the concept of value and activities that add value to customers in their work, thereby actively contributing to the value chain of the entire organization to provide customers according to the principle of implementing quality right from the source.
Investing in technological innovation is one of the solutions to increase productivity, but not all businesses have the conditions to do so. However, investing in applying management methods and tools such as Lean, 6 Sigma, Total Equipment Performance Maintenance (TPM), 7 quality control tools, 5S... to increase productivity and quality is within the capabilities of businesses.
With the new trend of the knowledge age, the transformation of the asset structure of enterprises is currently changing, from the structure of tangible assets accounting for 75% and intangible assets accounting for 25% in the industrial age to the structure of 75% intangible assets and 25% tangible assets in the knowledge age. The use of management tools and creative methods is a trend of the world. When resources and cheap labor are exhausted, commercial advantages need to be exploited, at that time it is necessary to promote the knowledge of each person in the organization, and to rearrange the management and production system.
However, many Vietnamese enterprises are still hesitant, instead of improving and overcoming, they try to hide their shortcomings. Currently, many Vietnamese enterprises are still on the sidelines in the process of rearranging their management and production systems.
